Problem: Find the smallest positive real number $c,$ such that for all nonnegative real numbers $x$ and $y,$
\[\sqrt{xy} + c |x - y| \ge \frac{x + y}{2}.\]
Answer: Since $x$ and $y$ are nonnegative, $x = a^2$ and $y = b^2$ for some nonnegative real numbers $a$ and $b.$  Then
\[ab + c |a^2 - b^2| \ge \frac{a^2 + b^2}{2}.\]If $a = b,$ then both sides reduce to $a^2,$ and so the inequality holds.  Otherwise, without loss of generality, we can assume that $a < b.$  Then the inequality above becomes
\[ab + c(b^2 - a^2) \ge \frac{a^2 + b^2}{2}.\]Then
\[c (b^2 - a^2) \ge \frac{a^2 + b^2}{2} - ab = \frac{a^2 - 2ab + b^2}{2} = \frac{(b - a)^2}{2},\]so
\[c \ge \frac{(b - a)^2}{2(b^2 - a^2)} = \frac{b - a}{2(b + a)}.\]We want this inequality to hold for all nonnegative real numbers $a$ and $b$ where $a < b.$

Note that
\[\frac{b - a}{2(b + a)} < \frac{b + a}{2(b + a)} = \frac{1}{2}.\]Furthermore, by letting $a$ approach 0, we can make $\frac{b + a}{2(b - a)}$ arbitrarily close to $\frac{1}{2}.$  Hence, the smallest such real number $c$ is $\boxed{\frac{1}{2}}.$